Asian shares slip on Europe nervousness

HONG KONG: Asian shares dipped early Tuesday as the previous day's relief at political progress in Italy and Greece was replaced by caution over whether Europe's leaders can tame the eurozone debt crisis.

As new governments in Rome and Athens prepared to push through key debt-busting legislation, German Chancellor Angela Merkel warned that the region was facing its "hardest hour" since World War II.

Tokyo was 0.42 percent lower by the break, Hong Kong shed 0.67 percent, Sydney fell 0.37 percent and Seoul dipped 0.41 percent. Shanghai was flat.

Markets rallied on Monday after Italian prime ministerial nominee Mario Monti replaced Silvio Berlusconi. Greece also has a new leader, Lucas Papademos.

However, they fell Tuesday following a sell-off in Europe and the United States as dealers began to consider that despite a change in leadership, Italy and Greece still faced a tough task to implement effective measures. (AFP)